Will the rising federal deficit hinder an economic recovery?

Prices for U.S. Treasuries fell this week; presumably because investors are worried about the enormous amount of debt the federal government must take on to cover its trillion-dollar-plus deficit. Analysts say the resulting higher yields on government bonds could push up mortgage rates and slow the recovery of the housing market and the economy overall.

12 Responses

We are just beginning to realize the magnitude of the mess our economy is in and this massive spending by our government is not helping. People, it is going to get worse. Their is no such thing as getting something for nothing. This country was once great because of competition… take that away and you have a welfare state of mind.

I am so sick and tired of hearing all of the comments regarding socialism. It is an obvious Fox News talking point used to rile up a base of the poorly informed. If it isn’t one thing it’s another… but socialism, it isn’t. Look at the Republicans and Conservatives… they had a choice between siding with David Frum or Rush Limbaugh. They went with Limbaugh! They will never get back into power backing people like Limbaugh.

Who informs you, CNN or MSNBC…we are apparently free thinkers like yourself and in being so can analyze and process information well enough to form our own opinions. I find it offensive that people who think differently from you are called brainwashed by Fox News. As far as your statement regarding the Republicans and Conservatives….the next election will tell that story.

Our country will pay a massive economic price for electing this spendthrift politicians. Just look at the immensely high personal tax rates in socialized Europe with their medical plans that the democrats have so much admired and are trying to emulate.

I hope they all get tossed from office with and the health care bill and the “stimulus” non-sense is never repeated.

BTW, those banks that got bailed out with our money and then paid themselves such large bonuses? Most employees of them were huge obama and clinton donors. They are thieving liberals who play the system big time.

Amen! I am a moderate, hardly watch ANY of the news programs. I am terrified where this administration is taking us. There appears to be no fiscal restraint or responsibility. We are running up a debt that will take generations to resolove, if ever. The definition of socialism is: any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods. If that isn’t what is taking place, I will eat my words.

I‚Äôm often confused by the ‚ÄúLeft‚Äù when they blame Fox News and Rush Limbaugh for all the ills in the world since you can pretty much count the non-liberal news outlets in America on one hand; most are owned by ol‚Äô Rupe.

Relative to the comment about ‚Äúbacking‚Äù Limbaugh; backing him for what? Is he running for office?

A mistake that the ‚ÄúRight‚Äù has made is allowing the liberal media to use Limbaugh as a poster boy for what‚Äôs wrong with the Republican Party. Limbaugh, like Ann Coulter, is far too polarizing to be of any real use to conservatives.

Truly, the Republican Party has lost its way. No longer are they the party of fiscal responsibility and social conservatism.

The Tea Party folks seem to be reminding smart Republicans of their roots, the Reagan revolution and that, as a nation, we‚Äôve dug ourselves into a very deep economic hole; a hole that has gotten bigger in the past 14 months.

Tea Partiers are however not in lock-step with Conservatives or Republicans (nor Liberals). This new breed of politically active and aware Americans actually thinks about the issues and supports candidates that are like-minded.

Imagine that!

Looks like we need a revolution.

The revolution that we need in America removes the word ‚Äúentitlement‚Äù from our vocabulary. The revolution must wean us all off of the government teat. The revolution must make us self reliant.

I guess I am one of the few who recall how the Bush administration left us in a near complete economic meltdown. Stock market has recovered over 50% since the Democrats took control–banks have stabilized–I no longer worry that the banks will fail and my 401K has largely recovered from the fiscal disaster of the previous administration. Company earnings are up. Unemployment still too high but shows signs of recovering. If all this is socialism, I guess I’m a socialist. So be it!